Microsoft ready to bid again for Yahoo if board is replaced
Tuesday 08 July 2008
Shares in Yahoo soared yesterday after Microsoft said it would reconsider a takeover bid for the company if the search engine specialist's board is replaced.
Microsoft and Yahoo were unable to agree takeover terms earlier this year.
The billionaire US activist Carl Icahn is trying to replace Yahoo's board at the group's annual meeting next month.
The world's largest software company sought to acquire Yahoo to fight back against the search engine market leader Google.
Yahoo's shares closed up 12 per cent at $23.91 in New York last night. In a letter to Yahoo shareholders yesterday, Mr Icahn said he had held several lengthy conversations with Microsoft's chief executive, Steve Ballmer, over the past week. Mr Icahn said: "Steve made it abundantly clear that, due to his experiences with Yahoo during the past several months, he cannot negotiate any transaction with the current board."
Yahoo rejected a $33 a share offer from Microsoft as undervaluing the firm.
In a statement, Microsoft said it "cannot reach an agreement " with the current Yahoo board, led by Jerry Yang, but added: "We confirm, however, that after the shareholder election Microsoft would be interested in discussing with a new board a major transaction with Yahoo, such as either a transaction to purchase the 'search' function with large financial guarantees or... purchasing the whole company."
Yahoo said that its independent directors and management approached Mr Ballmer about an acquisition in June, but he was no longer interested even in the price range which they had previously proposed.
In a statement, Yahoo urged Mr Ballmer to make a "proposal immediately" and said it was keen to hear if Mr Icahn has an actual plan beyond hoping that Microsoft will do a deal.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 3 Belgium fan Axelle Despiegelaere lands L'Oreal campaign after World Cup viral photo
- 4 Britney Spears sings 'Alien' without Auto-Tune in embarrassing leaked audio clip
- 5 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Israel-Gaza crisis: ‘We just want it to end… We don’t deserve to live like this’
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...
£12 - £15 per hour: Cameron Kennedy Recruitment: Excellent opportunity to join...